In Re Roth American, Inc., Debtor. Teamsters Local Union No. 401 Health & Welfare Fund International Brotherhood of Teamsters, Local 401

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• holding that debtor's implicit assumption of the collective bargaining agreement required administrative priority for wage and benefit claims only to the extent that the benefits were earned by services rendered post-petition
• stating “there is no indication either from the language or the legislative history of section 1113 that Congress intended to address the priority to be given claims based on a collective bargaining agreement”
• collective bargaining agreement was fundamentally different from previous agreements because it bound the debtor to maintain its operations and continue to provide work to union members
• “The framework of section 363 is designed to allow a trustee (or debtor-in- possession) the flexibility to engage in ordinary transactions without unnecessary creditor and bankruptcy court oversight.”
• postpetition collective bargaining agreements are routinely entered into by manufacturing companies to secure uninterrupted services from their workforces and therefore such transactions are within the ordinary course unless their terms depart significantly from prepetition agreements
• post-petition extension of collective bargaining agreement

Source: CourtListener parenthetical corpus (CC0).